AN optronics factory in North Wales is in line to secure multi-million pound orders for the UK's military and civilian aircraft industries, hinted defence secretary Geoff Hoon.

Mr Hoon, on a visit to Thales Optics at St Asaph yesterday, said the company was bidding for "a number of new contracts", although he did not reveal details.

He said: "They have been enormously successful in the very recent past and I anticipate that success will continue.

"This factory is highly important to the UK defence industry. It supplies not only what has become a standard item of equipment for the army - night vision equipment - but also some very sophisticated kit for fighter aircraft including the Typhoon."

He said head-up displays used by military jet pilots were also finding application in civilian aircraft with Airbus placing an order with Thales for its A380 superjumbo, due to make its maiden flight within days.

Mr Hoon toured the site where a five-year investment programme worth up to £18m started last year and met shop-floor workers and management.

The company employs 440 at the optronics factory and a further 60 at the nearby Thales Space Technology plant.

He said he was equally impressed by the company's emphasis on skills and apprenticeship training.

Vale of Clwyd MP Chris Ruane, who accompanied Mr Hoon on his tour of Thales, described the plant as the "jewel in the crown" of St Asaph Business Park.

The park, once written off as a white elephant, has grown from 100 jobs in 1997 to provide a base for businesses creating 2,500 jobs today.

Mr Ruane added the Thales site was at the heart of one of the top three opto-electronics clusters in the world.

* Mr Hoon stepped into the row between Washington and Brussels over launch aid for new civilian aircraft yesterday to rebut Boeing's allegations of illegal state support for Airbus.

He said: "We are confident as a government that we have not broken any rules and that neither has Airbus. We will continue to support Airbus and the employees who work for an extremely successful company."